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l

MONTHLY BUSINESS REVIEW
0

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the

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~ume 25, No.7

FED ERA L RES E R VE

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fDa II a s

This copy is released for publication in morning papers-

Dallas, Texas, September 1, 1940

DISTRICT SUMMARY
Consumer demand for merchandise in the Eleventh District
declined by less than the average seasonal amount in July, and
sales at reporting department stores were at the highest level
for any corresponding month since 1929. Distribution of
commodities through wholesale channels exceeded that of a
year ago by 6 per cent. Petroleum output showed a further
sharp decline, the production rate being 11 per cent lower
f.ha n in July, 1939. Activity at petroleum refineries reflected
Ittle change over the month but continued moderately below
th.at of a year ago. Consumption of cotton at Texas textile
mIlls increased to a level one-third higher than in the comparable month of 1939. Although the value of construction
Contracts awarded showed a marked decline from the all-time
peak recorded in June, private construction increased and the
total value of awards was the highest for any July in more
~han a decade. The agricultural outlook continued generally
bvorable, with prospective production of most summer crops
a OVe the 1939 and ten-year average harvests.
BUSINESS
The mid-summer decline that ordinarily occurs from June
t1: July in the distribution of merchandise to consumers
~ rough reporting department stores in this district was much
ess pronounced than usual this year. This is accounted for in
jan by the larger-than-average contraction that took place in
f Une. However, the seasonal reduction in consumer purchases
/om May to July this year was also smaller than the average
~r that period, with the result that this bank's adjusted index
~9 department store sales rose from 105 per cent of the 19232S average in May to 108 per cent in July. Moreover, daily
~verage sales in the latter month were 5 per cent greater than
In the corresponding month of 1939; this gain compares with
~n average year-to-year increase of only 3 per cent for the
~st seven months of 1940. Department store business was
~~~mul~ted during July by the promotion of extensive price
d . Uctlon sales. According to reports from weekly reporting
ofFartment stores, trade continued active during the first half
p ,August with sales exceeding those in the corresponding
e~lod of 1939 by 11 per cent.
th nventories at reporting firms were again reduced by more
h a~ the average seasonal amount and the value of stocks on
th n at the end of July was only 4 per cent higher than on
o at date last year. The rate of collections on regular accounts
U tStand"
that: lng l11crease d counter-seasona I ' Ju 1y an d excee ded
Iy in
'W In July, 1939, by 6 per cent.
sal holesale trade in the Eleventh District, as measured by
sme~l at 88 reporting firms in eight lines of trade, showed a
a a net expansion from June to July and exceeded that of
olear ago by about 6 per cent. Among the individual lines
in t ad e, noticeable increases over July last year were reflected
tiy t e sales of machinery and equipment, groceries, automoele e s~pp1ies and drugs including liquors. The distribution of
reg~trtcal supplies was the only reporting line of business to
Yealster more than a fractional decline as compared with a
iugr go . The dollar value of inventories on July 31 at reportch' fl rms Was 3 per cent higher than a month earlier due
so~e :' to a sharp increase in stocks at drug firms. In comparisho lth a year ago, however, all lines of trade except one
fro \\Ted a substantial increase in stocks, the gains ranging
ele; ,6 per cent for grocery establishments to 34 per cent for
acc~rlcal supply dealers. Total collections during July on
Unts Outstanding at the beginning of the month were at

h

BAN K

Aug. 31

a considerably lower rate than in the corresponding month
last year.
The number of commercial failures in the Eleventh District
increased considerably in July, and liabilities of defaulting
firms rose sharply to a post-depression high. Dun and Bradstreet reported 38 insolvencies during the month, having an
aggregate indebtedness of $2,320,000. Although there was a
noticeable increase in the number of small concerns defaulting
during the month, the sharp rise in liabilities was due chiefly
to the failure of one large industrial concern.
AGRICULTURE
Agricultural prospects in some sections of the Eleventh District were affected adversely by unfavorable weather during
July. In northwest Texas, New Mexico and portions of southeastern Arizona crops suffered from a deficiency in moisture
and high temperatures, and in Louisiana extensive damage to
crops resulted from excessive rainfall. Despite these unfavorable factors, the outlook for agricultural production in the
district as a whole is promising. With the exception of cotton,
the prospective harvest of a majority of summer crops is in
excess of the 1939 production, and in most cases the indicated yield is above the ten-year, 1929-1938, average production. During the first hal£ of August, heavy rains in west
Texas were very beneficial to growing crops, and precipitation
in portions of northwest Texas partially relieved the drouth in
that area. However, severe storms accompanied by torrential
rains caused further damage in Louisiana.
On the basis of acreage in cultivation on July 1 and physical conditions existing at the beginning of August, the prospective production of cotton in the Eleventh District during
1940 is 3 per cent smaller than in 1939. The decline is due
entirely to a much smaller indicated harvest in Louisiana
where a prolonged period of wet weather damaged plants, prevented cultivation, and caused abandonment of crops in some
areas. The condition of the crop in Texas on August 1, as
reported by the Department of Agriculture, was above that
a year earlier and the ten-year average for that date in virtually all sections except the drouth area of the Texas Panhandle. In that area, however, some relief was provided by
rains during the first hal£ of August. The condition of cotton
in Oklahoma, New Mexico and Arizona is fair to good,
though additional moisture is needed generally. The indicated
production of cotton in Texas on August 1 was placed at
2,893,000 bales, which represents a small increase over the
1939 harvest, but is nearly 1,000,000 bales smaller than the
1929-1938 average production. The estimated per acre yield
of 159 pounds is about the same as that a year earlier, but 7
DEPARTMENT STORE SALES AND STOCKS
EllV£NTH rEOl:RAL ROERVt D.STR.CT

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This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

30

MONTHLY BUSINESS REVIEW

2

per cent higher than the ten-year average. In Louisiana, the
August 1 estimate of 496,000 bales indicates the smallest
harvest since 1934. Only moderate increases over a year ago
are forecast for cotton production in New Mexico and
Arizona, but in Oklahoma the estimate of 630,000 bales is
one-fifth greater than the 1939 harvest. The August 1 forecast for the United States was placed at 11,429,000 bales,
which is 3 per cent smaller than the 11,817,000 bales harvested in 1939.
Although the indicated production of corn, oats and tame
hay in the Eleventh District was reduced moderately in July,
the August 1 forecast for all feed crops is well above the 1939
and ten-year average harvests. The acreage planted to grain
sorghums in Texas this year showed a further increase over
that a year earlier, and the indicated production is one-fourth
higher than in 1939. The prospective production of this crop
in Oklahoma is likewise higher than a year ago, but a substantial decline is anticipated for New Mexico. The estimated
volume of peanuts to be picked and threshed in Texas and Oklahoma is considerably higher than in 1939 and about double
the 1929-1938 average harvest. The increase over a year ago is
due chiefly to a higher prospective yield per acre. The Texas
pecan crop has been favored with good growing conditions,
and production is expected to be sharply higher than in 1939.
The condition of citrus trees in Texas showed little change
during July, being considerably below that of a year ago.
Following the sharp decline and subsequent recovery that
took place between May 1 and June 15, spot cotton prices
showed a slow but steady decline during the two months
ended August 15. On the latter date, the price of spot cotton,
middling, 15/16-inch staple, at ten designated markets averaged 9.97 cents per pound, which compares with an average
of 10.77 cents per pound at the middle of June. Although
the August 15 price was approximately one-half cent per
pound above the 1940 low recorded three months earlier, it
was, with the exception of a brief period in May, the lowest
since last November. Factors contributing to the decline in
cotton prices include the temporary loss of additional foreign
markets due to military operations and a recent decline in
foreign textile mill activity in those countries having effective
access to the American market.
On August 9 the Commodity Credit Corporation announced
a loan program covering the 1940 cotton crop. The loan is
WHOLESALE AND RETAIL TRADE STATISTICS
r - - - - Percentage ohange in: ---____"Ratio July collections
·Stocks
to accounts outstandNet sales
ing July 1
, July, 1040 from
Jan. 1 to ~ July, 1940 from ~~-----.......
July,
June, July 31, 1040 July,
June,
InstalRetail trade:
1039
1040
from 1980
1030
1040
Regular
ment
Department stores:
Total 11th Diet .. + 9.2 - 11.6
- 5.1
14.5
2.9
4.2
40 .9
Dallas .... . ..... +10.7 - 3.0
16.6
3.0
40 .5
3.6 - 5.0
Fort Worth .... . . + 5.6 -21.5
2.0
+10.2 - 6.1
40.0
11.3
Houston . ........ + 7.7 - 14 .6
42 .5
+ 1.5
2.1 - 18.6
San Antonio ..... +10.1 - 5.3
44 . 1
7.5
i2:4
6.1 + 5.7
Other oities ...... + 1.2 -20.5
+ 0.0 +1.7 - 5.3 37 .5
16 .0
Indespendent stores:t
Arizona ......... + 6.3 ..... .
5. 7
Oklahoma ....... + 3.3 - 4.9
+ 1.9
New Mexico ... .. + .9
5.6
Texas . .......... + 5.0 - 4.1
3.8
Wholesale trade:t
Machinery, eqp't &
supplies (except
+23.6
......
42.3
eleotrical) ....... +10.5 - 23 .3
Groceries ......... +10.0 +.6
+ 5.6
+ 5.8 - . 6
80.2
+ 7.5
+20.3 +14.1
75.3
Drugs .. .. ...... .. + 7.4 +14.6
0.0
+ 3.3
+11.7 + 3.2
54.2
Hardware ........ - . 4
Eleotrical supplies. - 7.7 - 3.2
+ 1.8
+33.6 - . 9
74.8
Tobacoo & prod's . .
0.0 - 6.9
-.9
86.5
Surgical eqp't ..... + 5.6 + 7. 1
+i5:il +'5:7 43.8
0.0 - 4.1
62.9
Automotive sup!'s. + 7.8 +12.8
·Stooks at olose of month. tCompiled by United States Bureau of the Census.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1923-25 averago= 100)
With seasonal adjustment
Without seasonal adjustment

+
+
+
+

+
+
+
+

+
+
+

Total Eleventh Dist ..
Dallas .. ............
Fort Wortb .. ........
Houston ............
San Antonio .........

Sales-July
1940
1939
108.0 102.6
118.2 110.9
112.4 109.9
102.7 102 .6
114. 4
99 .4

Stocks-July
1940
1939
65.9
63.2
64.4
62.5
60.9
67.8
42.5
42.2
00.8
64.1

Sales-July
1940
1939
75.6
71.8
79 .2
74.3
84.3
82.4
71.8
71.0
77.8
67.6

Stooks-July
1940
1939
60.0
57 .5
50.9
58.1
56.0
62.4
37.8
37 . 6
55 .8
52.9

based on 15/16-inch, middling cotton, with differentials for
grade, staple and location varying from 9.90 cents per pound
in the eastern part of the cotton belt to 9.16 cents per pound
in west Texas and New Mexico. Loans will be available until
May 1, 1941, to producers cooperating with the program of
the Agricultural Adjustment Administration. The basic loan
rate on the 1940 crop is 21 points higher than the rate on the
1939 crop.
Livestock ranges in the Eleventh District deteriorated
seasonally in July, but in most sections conditions remained
above the ten-year, 1930-1939, average. On August 1 ranges
in the western portion of the district showed the adverse
effects of the hot, dry weather, and in northwest Texas conditions were becoming serious due to the lack of moisture.
The unfavorable situation in these areas was partially relieved
by rains during the first half of August, but additional precipitation is needed, particularly in the Texas Panhandle. The
condition of livestock continued generally good throughout
the district, although stockmen in some of the drier cattle
areas resorted to supplemental feeding in order to prevent
shrinkage. According to the Department of Agriculture,
shipments of cattle and calves were fairly light in July, and
marketings this fall are expected to be relatively small. ~n
the other hand, shipments of sheep and lambs picked up In
July, with heavy marketings in prospect during the next few
months. During the first half of 1940, the movement of
cattle and calves from Texas to market and to feed lots was
19 per cent smaller than in the corresponding period of 1939;
whereas, shipments of sheep and lambs exceeded those of a
year ago by 111,000 head, or by 9 per cent.
A larger number of breeding ewes on ranges, together with
generally favorable feed and weather conditions during the
past winter and spring, resulted in a record high production
of lambs in Texas this year. The Department of Agricultu~e
estimated the 1940 lamb crop at 4,867,000 head, which IS
one-fifth higher than in 1939 and 6 per cent above the previous record number produced in 1938. The 1940 production
of lambs in New Mexico is moderately higher than in 1939,
and the Arizona crop is about the same as that a year earlier.
Reflecting chiefly the higher production of lambs in TexaS,
the number docked in the United States increased 3 per cent
in 1940 to an all-time peak of 32,729,000 head.
Coincident with the expansion in the number of sheep on
ranges, the quantity of wool shorn or to be shorn in Texas
during 1940 increased to an all-time peak of 83,648,000
CROP PRODUOTION
(In thousands of units)
, . - - - Texas - - " . - Eleventh District---Estimated
Estimated
Crop
Unit
Aug. 1,1940
1939
Aug. 1, 1940
1989
Cotton .. ...... . ..... . .. .
Bales
2,893
2,846
3,516
3,631
Corn..... .. ... . .. ....... Bushels
91,630
73,876
105,530
87,166
Wheat. . . . . . . . . . . . . . . . . . Bushels
26,270
27,650
26,999
28,703
Oats . .. .. . ... .. .. . .. ... . Bushels
34,375
28,750
37,631
31,3~~,
Barley. . . . . . . . . . . . . . . . . . Bushels
3,632
2,055
10,540·
10,2 ,
90
Grain sorghums.. .. .. .. .. Bushels
48,075
38,115
65,478*
5~'J30
Tamo hay. . . . .. . ... . . .. .
Tons
1,189
1,022
1,606
3'349
Irish potatoes... ... .. . . . . Bushels
3,102
2,666
8,814
' oot
Sweet potatoes........... Bushels
4,158
3,780
l1,703f
J1'~88t
Rico ....... . ........ .... Bushels
15,714
13,988
15,714
13, 01
Peanuts. . .. . ... .. .. . .. . . Pounds
159,000
120,480
108,875
151,t~4
Pecans.................. Pounds
31,400
19,000
52,814
3~'1201
Peaches............ .
Bushcls
1,976
1,972
2,9891
'
s
·Oklahoma, Texas, New Mexieo and Arizona. tLouisiana, Oklahoma and Tcxas. Ifl'e:ttl
only.
ILouisiana, OklahomubTexas, New Mexico and Arizona. Other data for E eve
District derived from estimates y states.
SOURCE: United States Departmcnt of Agriculture.
OASH FARM INCOME FROM THE SALE OF PRINCIPAL FARM PRODUCTS
AND GOVERNMENT BENEFIT PAYMENTS
(In thousands of dcllars)
r - - - May, 1940-----..,
Receipts from:
Govern- ,~---....:Total receipts~M
31
~--------." ment
May
May
Jan. 1 to al~39
Crops Livestook· payments
1940
1939
1940
23 166
Arizona ...... .
1,008
2,240
55
3,303
2,742
24,161
88'050
Louisiana ..... .
5,239
1,887
2,135
9,261
9,836
39,792
11' 433
New Mexico .. .
239
2,415
138
2,792
2,552
15,393
59'891
Oklahoma .... .
2,861
6,9aO
1,437
11,228
14,977
62,408
'515
Texas ........ . 11,024
26,200
2,545
80,760
45,232
175,733 ~
317,487 299,015
Total. . . 20,371
39,672
6,310
66,353
75,330
·Includes receipts from the sale of livestock and livestock products.
SOUROE: UnItod States Department of Agriculture.

MONTm..y BUSINESS REVIEW
P~unds . This quantity is 8 per cent above the 1939 clip and
a. OUt one-third higher than the 1929-1938 average production. The amount of wool shorn in New Mexico is estimated
~o ~e 4 per cent higher than a year ago, while a fractional
Uc!me is indicated for Arizona. Wool production in the
hOi ted States is placed at 388,692,000 pounds, which exceeds
t e previous record output in 1939 by 3 per cent.
FINANCE
On July 11 the United States Treasury invited cash subscr' .
I IPtlOns to an issue of 2 Y4 per cent Treasury bonds, and
er in the month the Commodity Credit Corporation asked
30r subscriptions to a new series of Government guaranteed,
per cent, Corporation notes. Subscriptions to these securi~t in the Eleventh District aggregated $143,400,000 for
!,easury bonds and $51,421,000 for the Corporation notes;
~4 Otments against these subscriptions totaled $14,506,000 and
f ,698,000, respectively. Changes in the investment position
~ banks in this district during the five weeks ended August
~ reflect in a large measure the effects of the distribution of
t ese securities.
I I~vestment holdings at weekly reporting member banks in
leading cities, which had followed a downward trend since
as~ December, were expanded $11,900,000 between July 10
~? August 14, representing increases of $10,400,000 in
Irect and guaranteed obligations of the United States Govetrnment and $1,500,000 in other securities. On August 14
Otal mvestments at reporting banks amounted to $259,.
20
I 0,000, which was $1,600,000 higher than a year ago. All
~ a~ses of loans at these banks except "other" loans, which
~n~ ude personal advances, increased during the five weeks
dn ed August 14, but total loans of $268,400,000 on that
! ate Were only $1,700,000 higher than five weeks earlier, with
oans for commercial, industrial and agricultural purposes
aCCOu'
.
",' h ntmg f or $1,100,000 of the increase. In companson
Alt a year ago, total loans outstanding at the middle of
Ugust were $19,200,000 greater.
Government deposits at reporting banks showed a net in~~~ase of $4,606,000 between July 10 and August 14, and
",Jus ted demand deposits rose $4,595,000, but these increases
t' ere more than counterbalanced by declines in interbank and
~rne deposits. In consequence, total deposits on August 14
e ere $2,200,000 lower than five weeks earlier and only moddra~7ly ~bove the 1940 low point. In order to meet the net
thC me m deposits and the increase in loans and investments,
t .ese banks withdrew $15,800,000 of their balances mainalDe~ at other domestic commercial banks.
F d ady average reserves of all member banks carried with the
be era I Reserve Bank of Dallas were reduced $4,900,000
i:t,,:,een the middle of July and the middle of August, reflectt g In part the Icash purchases of investment securities. Simule~neous with this reducti~n, required reserves of member banks
suh~nded in consequence of an increase in net demand deposits
a\, Ject to reserve. As a result of these developments daily
of ~age excess reserves maintained at the Federal Reserve Bank
end alIas declined approximately $7,000,000 during the month
in e~ ~ugust 15. This decline was relatively small, however,
ha re atlon to total excess reserves, which were estimated to
A;e averaged about $83,000,000 during the first half of
of ~USt. Member bank borrowing at the F~deral Reserve Bank
000 alIas between July 15 and August 15 Increased by $526,ba k to a total of $862,000. While discounts for member
s are still in nominal volume, the total at the middle of
not&USt Was the highest since September, 1937. Federal Reserve
du ~s of this bank in actual circulation increased further
oo~ln& the month ended August 15, and the total of $82,400,Yea OUtstanding on that date was $5,100,000 greater than a
r ago.

t
o

11.:

Fl'
INDUSTRY
o lowmg a sharp increase in June, occasioned by the award-

8

ing of contracts for a large naval air base, the value of construction contracts awarded in this district showed a marked
decline in July. The decrease from June to July, amounting
to nearly 50 per cent, reflected a smaller volume of awards in
all classes of construction work. However, when the value of
awards for the naval air base is excluded from the June total,
awards in July were approximately one-fourth higher than in
the preceding month. Furthermore, the value of contracts let
in July was nearly 30 per cent larger than in that month of
1939 and above that for any corresponding month since 1929.
Residential building, which declined 20 per cent, was the
only type of construction work that failed to register an
increase over that in July last year. This unfavorable comparison is due to the fact that total residential building in
July last year was augmented by heavy awards for publiclyfinanced projects, including United States Housing Authority
slum-clearance projects and army barracks. Privately-financed
residential awards this July were about 8 per cent higher
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
Aug. 15,
Aug. 15,
1040

1030

July 15,
1040

Total oash reserves . . . . . . .. . . . . .. . •••.. . . . . ••... .. $270,705
$243,564
$251,549
Discounts for member banks ... . . . . . . . .. . . .• •. . . .. .
862
375
336
Oth ~r bills disoounted. .. . .. . . .. .. .. . .. . . ... .. . . .. .
None
59
Nono
Industrial advances . .. . . . . . . . . . . . . . . . . . . . ..... . . . .
463
552
465
Bills bought in the open market. . ... . .. . . ..•...... .
None
16
None
United States Government securities... . . . . . . . . .. . . .
05,344
03,201
05,465
Total earning assets. . . . . . . . . . . . . . . . . . . .. . . . ... . . .
06,660
04,203
06,266
Member bank reserve deposits. . . . . . . . . . . . . . . .. . . 211,054
105,803
210,829
Federal Reserve notes ia aetual eirculation . . . . .. . . . .
82,400
77,273
81,631
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
Aug. 14,
Aug. 16,
July 10,
1040

Total loans and investments. . . . .. .. .. . . . . . . . . . . .. . $527,626
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268,404
Commereial, industrial and agrieulturalloans. . . .. .
176,000
Open market paper. .... .. . .. .. . ......... .. .. . . .
2,302
Loans to brokers and dealers in seeurities. . .. . . . . . .
2,853
Other loans for purehasing or oarrying seourities . ...
13,472
Re. 1 .9t. t. loan.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,004
Loans to banks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
000
All otherloan. . . . ... .. .. . .. . ... . . . . . . . . . ...... .
40,774
United States Government direot obligations. . . . . . . . .
153,104
Obligations fully guaranteed by United States Govt. .
48,166
Other seourities . . . . . . . . . . . . . .. . . . . .. . . . . . . . . .. . . .
57,862
Reserves witb Fodoral Roserve Bank. .. . . . . .. .. . . . . . 140,000
Balances with domestio banks. .. . . .. . . .. . . •.... .. . . 284,714
Demand deposits-'adjusted . .. . ... . . .. . .........
490,145
Time dcjlOslts... . . . .... . . . .. . . ......... . .... .. . . 135,500
United States Govornmont doposits.. . .. . .. .. . . . . ..
31,708
Interbank deposits. . ... . . . . . . . . . . . . . . . . . . . . . . . . .. . 245,630
Borrowings from Federal Reserve Bank. . . . .. ... . ...
None
'Includes all demand doposits other than interbank and United
oash items reported as on hand or in prooeBB of oolleotion.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
July
July
Potg.ohango
1040
1039
over year
Abilone. . . .... . ..... . . . . $ 7,818
$ 7,845
.3
Austin ........ .. . •. .....
31,000
32,700
- 2.5
Beaumont... ..... . . . ... .
23,300
22,253
+ 4.7
Corsioana . . . . . . .. . . . . . . .
2,810
2,841
- 1.1
Dallas..... . .. . . . ... .. ..
244,214
238,816
+ 2. 3
EI Paso.. . ...... .. . .....
20,720
25,648
+ 4.2
Fort Worth ..... . .. . .....
80,347
83,800
- 4. 1
Galveston .. .. .... .. ... . .
24,048
21,864
+14.1
Houston... ..... . .. . .... .
247,614
214,484
+15.4
Port Arthur ... . .•.. .. ...
9,242
8,005
+ 6.3
Roswell. . . . . . . . . • . . . . . . .
4,680
4,283
+ 0.5
San Antonio . . .. ... . . . . ..
71,064
67,700
+ 0.3
Shrovoport . . . . . .• . ......
45,032
40,911
+ 10.1
Texarkana' . . . . . . . . . . . . . .
0,017
6,624
.1
Tueson.. ..... ... .... ....
11,202
0,588
+17.8
Tyler .,.. ...... ... .. ... .
10,022
10,001
+ .2
Waoo .... . .. . . . .........
12,630
12,680
.3
Wiohita Falls...... . ... . .
16,061
14,303
+11 . 6

1030
$506,851
240,228
103,157
1,641
3,354
13,785
21,101
438
45,662
158,017
45,1 23
54 ,483
123,871
200,080
455,235
135,382
31,600
21 8,068

1040
$514,074
266,750
174,899
2,035
2,372
12,806
22,211
626
51,711
145,828
45,176
56,320
140,000
300,480
485,550
136,710
27,102

Juno

Potg. ohango
over month

25~J007

None
None
States Governmont, less

1940
$ 7,010
34,618
22,833
2,843
238,522
26,847
80,207
25,585
226,411
0,484
4,502
73,820
42,480
6,082
12,309
11,093
12,436
16,585

+ 2. 7
- 7.0
+ 2.0
+ 1. 2
+ 2.4
-.5
+.1
- 2.6
- 0.4
+ 2.0
+ 4. 2
- 2.5
+ 6.0
- 5.2
- 8. 0
- 1.5
+ 1.6
- 3.2

Total. . . . ..... .. $878,129
$820,041
+ 6.3
$855,356
+ 2,7
' Inoludes tho figures of two banks in Toxarkana, Arksnsas, loeated ia the Eighth Distriot.
SAVINGS DEPOSITS
July 3J, 1049
Percentage ehange in
--.. savings doposits from
Number of Number of Amount of r
July 31,
savings
Juno 30,
savin~s
reg;:rtin g
depositors
anks
depOS
Its
1030
1940
0,677 $ 4,015,600 + 4.3
.2
3
Beaumont . . . . .. ........ .
00,284
26,454,502 - 1.0
.0
8
Dallas .. . . . .... . .. ... ...
2
.4
18,330
8,207,440 .2
EI Paso .. ..... .... . .. ...
35,468
13,022,089 - 5 .0
3
.8
Fort Worth . . . ... ... .. . ..
4
10,070
12,203,402 +1.4
+ .03
Galveston .. . , .. . .. ..• . . .
10
31,558,357 + 3.8
.9
77,268
Houston . . . . . . . . .. . ... .. .
2
5,935
3,197,741 + 8.0
Port Arthur . . . ... . .. ....
+ 1.7
- 1.1
5
22,716
17,780,078 - 2.9
San Antonio .... . . . •. . . . .
3
25,188
.0
12,304,056 + 4.5
Shroveport .. . .. .. .......
- 1.5
4,622,040 - 1.0
3
8,267
Waoo . ..... . .... . . ... ...
7,226
3,645,016 - 6.5
- 3. 2
3
Wiohita Falls . .... . •.....
60
61,201
30,714,660 + 2.5
- .8
All others . . .. . . ... ... . ..
Total. .. . ...... .

115

380,720

$167,007,708

+

.6

-

.8

,

MONTHLY BUSINESS REVIEW

than in that month of 1939. The value of non-residential
building initiated during the month was about double that
in July, 1939, and represented principally an increase in private construction. The value of contracts awarded for heavy
engineering projects showed an increase of 85 per cent as
compared with a year ago due chiefly to an expansion In
publicly-financed work.
Extension of the emergency proration order instituted in
Texas during the latter part of June to effect a better alignment between production of and demand for crude oil, resulted in a further sharp contraction in petroleum output in
the Eleventh District during July. The curtailment in this
district was also responsible for a decline of 3 per cent in daily
average production for the United States as a whole. In comparison with July, 1939, daily average petroleum output in
the Eleventh District was 11 per cent smaller but elsewhere
in the United States production was at a rate averaging 13
per cent higher than a year ago and the total for the nation
averaged 2 per cent above that in July last year. In consequence of the curtailment in output, stocks of crude oil in
this district declined moderately during July, but in the
United States inventories witnessed a further small gain.
Following an uninterrupted increase during the first six
months of the current year, daily average crude oil runs to
refinery stills in the United States declined considerably in
July but continued at a 3 per cent higher level than a year
ago. In the Eleventh District, refinery operations were maintained at the June rate, but were 3 per cent smaller than in
the corresponding month last year. Production of gasoline in
the United States declined further in July and as consumption
was maintained at a high level inventories of motor fuel
declined considerably, but on August 3 stocks were still 17 per
cent higher than a year ago. Inventories of heating oil increased
seasonally and are drawing nearer to a level adequate to meet
the heavy seasonal demand during the winter months. Stocks
of fuel oil also increased further during July.
VALUE OF CONSTRUC'l'ION CONTRACTS AWARDED
(In thousands of dollars)
July
July'
June
January 1 to July 31
1940
1939
1940
1940
1939
138,367
111,825
Eleventh Distrie~total...
19,011
14,697
37,963t
6,516
8,179
10,728t
47.727
48,820
ResidentiaL. .. ........
All other. . . . . . . . . . . . . .
12,495
6,518
27,235
90,640
63,005
United States"-totnl. . . . .
308,673
290,883
324,726
2,021,760
1,999,247
Residential. . . . . .. .. . . .
140,430
109,330
135,274
831,002
753,857
All othor. . . . . . . . . . . . . .
258,243
100,553
189,452
1,190,758
1,245,390
"37 states east of the Roeky Meuntains.
t Revised.
SOURCE: F. W. Dodge Corporation.
BUILDING PERMITS
Percentage ehange
Pereentage
valuation from
J an. I to July 31, 1040 ohan$e
July,1040
r
'V
V'
ValUo.tlon
No. Valuation July,1930 Junc,1040 No.
Valuation
from 1030
31 $ 52,885 + 54.7 - 5.7
107 $ 343,445 - 7.3
Abilone ....... .
78
177,760 + 87.2 - 3.0
538
1,526,475 - 7.6
Amarillo ...... .
478,889 - 25.2 + 7.0
2,043
4,820,272 - 6.4
Austin ........ . 268
103,174 + 29.0 + 20.7
861
051,010 + 8.9
Beaumont ..... . 138
782,662 +253. a +214.4
1,386
4,873,382 +58.2
Corpus Christi . . 208
8,332,167 + 2.7
Dallas· .. . .... . 636 1,207,536 + 64.5 - 12 .2 4,270
02
227,505 + 90 .5 + 60 .0
630
1,488,089 +30.6
EI Paso ....... .
436,610 4.0 + 30 .9
1,730
2,903,759 -22 .6
Fort Worth .... . 264
124,728 + 3.5 - 30.7
1,020
1,235,061 +34.1
Galveston .. .. . . 150
3,454 13,612,625 -14.3
Houston ..... . . . 489 2,076,220 + 55.5 + 74 .5
79,808 4.0 - 19 .5
024
700,603 +14.1
Port Arthur ... . 145
826,210 +132 .3 + 87.3
4,778
3,066,120 +38.1
San Antonio ... . 679
603,020 +145.0 +124.4
1,310
2,970,700 - 10.5
Sbreveport .... . 158
76
669,040 +416.5 +441.0
400
1,378,788 +27.3
Waco ......... .
46
94,758 + 40.4 - 21.6
321
702,950 +29.9
Wichita Falls .. .

------

Total .... 3,458 $8,121,804 + 07.7 + 40.3
"Includes ffighland Park and University Park.

23,070 $40,805,455

+

.9

CRUDE OIL PRODUCTION-(Barrels)
July, 1940
Increase or decrease in daily
~--------."
average produotion from
Total
Dailyavg. , r - - - - - -- __."
produotion
produotion
July. 19a9
June. 1940
4,609,850
150,640
- 5,484
- 17,370
North Texas ... . .. .. ..... .. ..
6,730,150
217,102
- 56,779
- 44,478
Weat Texas ........... . .... . .
462,839
- 17,469
+ 13,623
East Texas ......... .. ... . .. . 14,348,000
5,606,900
180,868
- 47,340
- 47,934
South Texas ........... ..... .
5,814,000
187,548
- 40,262
- 38,577
Texas Coastal. .............. .
Total Texas ..... . .. .
New Mexico . ... ............ .
North Louisiana ............. .

37,168,900
3,252,000
2,040,600

1,198,997
104,903
65,826

-167,334
- 3,845
- 4,697

Total District.. . ... . . 42,461,500
1,360,726
-175,876
SOURCE: Estimated from American Petroleum Institute weekly reports.

- 134,736
1,099
- 3,051
-138,886

Although domestic consumption of petroleum productS
continues heavy, exports of crude petroleum and refiner}'
products have declined sharply due chiefly to restrictions on
exports to combat zones. On July 23 the United States Go~­
ernment added petroleum and petroleum products to the lIst
of commodities subject to the Export-Control Act, under
which exports of materials essential to national defense may
be restricted or prohibited.
Drilling activity in the Eleventh District and in the Unit~d
States declined in July. Although the rate of completions In
this district was below that of a year ago, in the nation as a
whole it was 7 per cent greater than in July last year.
Operations at cottonseed oil mills in the United States
showed a further moderate decline during the 1939-1940
season, due largely to a smaller supply of seed. Production of
cottonseed products reflected declines ranging from 4 per
cent for linters to 9 per cent for hulls. Shipments of cottonseed oil from mills during the past season were approximatel~
the same as those in the preceding season, but shipments 0
cake and meal and hulls declined about 9 per cent. Sales of
lin ters were subs tan tiall y higher than in the 193 8-19 39 season,
reflecting in part a sharp .increase in exports. Shipments of
crude and refined cottonseed oil to foreign countries were also
much greater than in the previous season. Mill stocks of cottonseed products were reduced sharply during the past season
and in the case of cake and meal and hull supplies on hand at
the end of the season were at a level considerably below the
ten-year, 1929-1938, average. Inventories of cottonseed at
crushing establishments on July 31 were the smallest for that
date in four years.
Operations at Portland cement mills in Texas during the
first half of 1940 were somewhat smaller than in that period
o~ 1939. Nevertheless, operations during the period were at a
h~gh level; production and shipments were, with the exceptIOn of 1939, greater than in any corresponding six-month
period of record. Activity at southern pine mills during the
~rst six months of 1940 also averaged somewhat below that
III the comparable period of 1939. In recent weeks, howeyer,
the demand for lumber has shown a substantial increase oyer
that of a year ago and shipments have increased accordinglYi
The volume of unfilled orders for lumber on the books .od
southern pine mills at the end of July was nearly one-thlr
larger than a year ago.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
~---Texas---v---Unitcd States----August 1 to July 31
August 1 to July 31 on
This season
Last season
This season
Last scnS
Cottonseed received at mills
(tons) .................... .
921.552
1,068,821
4,066,507
4,25~,~~~
Cottonseed crushed (tons) .... .
960,090
1,194,826
4,148,237
4,47 ,
Cottonseed on hand July 31
120,626
(tons) ..... .... ... . ....... .
16,530
55,068
38,896
Production of products:
Crude oil (pounds) ...... .. . 281,231,027
354,127,418 1,324,737,240 1,409,4~~,~r
Cake and meal (tOllS) ...... .
462,930
2,0.. , 79
566,235
1,880,438
1,161,°
Hulls (tons) .. ............ .
247,742
317,605
1,054,748
1,113,812
Linters (running bales) ..... .
224,857
265,327
1,073,502
Stocks on hand July 31:
Crude oil (pounds) . ... . . .. .
53,358,6f~
6,226,974
8,923,230
13,248,158
110,7
Cake and meal (tons) .. . ... .
20,548
25,065
81,858
77,087
Hulls (tons) .. ............ .
6,195
29,280
22,177
479,8 16
Linters (running bales) ..... .
43,638
127,329
133,364
SOURCE: Bureau of Census.
PORTLAND CEMENT STATISTICS-TEXAS MILLS
(In thousands of barrels)
tb)
Production
Shipments
Stocks (ead~
1940

1989

1940

1939

1039

m
571

m
533

~
545

1940

W
477

Juno ................... .

589
713
758
672

499
720
772
587

678
699
712
594

697
665
686
644

761
775
820
898

862
065
709
796
688

Total, six months.. .

3,654

3,772

8,666

3,805

January .. . ..... .... .. .. .
Fcbruary ............... .
March .. ... ..... ... . .. .. .

tr:~I:... ::::::::::::::: :
.

~
850

-

-

RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF
HOUSTON AND GALVESTON-(Bales)
August 1 to July 3~p
July
July
June
This season Last scn
1940
1939
1040
2122, 144
23
3,9, 435
2'205 170
3,605,229
' . ' •..
Stoeks, end of month. . . .. 1,235,465
1,002,366
1,284,743

~~~rt!.":::::::::::::::::

~:~~b

~g~~

~~:~~:

MONTHLY BUSINESS REVIEW
SEPTEMBER 1,1940

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Complied by the Board of Governors of the Federal Reserve System)

INDUSTRIAL PRODUCTION

.NT

"'"

140

130

I

/

100

80
70

I~

/

0

rrvf

110

)

\

IV

90

120

I V

\
\

110

I 00

v

90
80
70

eo

60
1
934

193~

1936

1
937

1938

1939

1
940

Index of physical volume of production, adjusted for
seasonal variation, 19 35-1939 aver ag e
100. By
months, January, 1934 to July, 1940.

=

•

~ONS

CONSTRUCTION CONTRACTS AWARDED
OF DOLLARS

DOU:~~

MILLI ONS Of

r---~----~--~----~--~----~--~400

o
1
93!5

'936

1937

1938

1939

1940

Three·month moving averages of F. W. Dodge CorPOration data for value of contracts awarded in 37
Eastern States, adjusted for seasonal vari ation. Latest
ligures based on data for June and July and estimate
for August.
WHOLESALE PRICES

m-

"'" C%HT
110

100

100

90

90

eo

eo

70

70

eo

60

80

80
\934

1936

1936

1937

1
938

1939

1940

Indexes compiled by the United States Bureau of
labor Statistics, 1926
100. By weeks, 1934 to week
ending August 10, 1940.

=

~f!-i~E::ER

BANK RESERVES

AND RaATEO

ITEMS

L

18_

~
I

·r---i---_+----~--1_--_+~~
~t_~ 1
14 , -+--+--+- -1- -7"1'-- -1- ....- 14
'/
J'~
12 1-----r----+---OO-L~D~700~~I~----r_~~~~--~1
~ ~~
.r

1°r--+-/ -:::.....+- ~f~~"Ia~V--pL.J f--I IO
----:,.r-e!! --- -'
J:::.OI~g.,czTI~N

.-

.Vv-'" ' ITr .

.---"1--'

r~~{1 --l-_- - l - - - l 4

-:::::'?""!..6."'K,....t:.N. :.:•,....:.b~n.'~.~~""".J'. ..... J"--... .......
~
iIfAN :!.:J.
. S l-!."'-----'''''''':::::o!....J
1934

1935

1936

t937

1938

1939

0

1940

\'Vednesday figures, January 3, 1934, to August 7,
1940.

Volume of industrial output was steady during July ~nd the first half of August, after a r~pid
expansion in May and June. Employment continued to increase. Reflecting mainly awards for national
defense projects, construction contracts rose to the highest level in ten years. Prices of basic commodities declined somewhat further.
PRODUCTION
In July the Board's revised index of industrial production stood at 121 per cent of the 1935-39
average, according to preliminary data. This is the same as in June and 17 points above the level
prevailing a year ago before the outbreak of the war. In most lines activity was maintained at the
levels reached in June or increased further.
Steel production in July was at about 85 per cent of capacity and in the first half of August
there was an increase to about 90 per cent. Production of pig iron and coke and output of nonferrous
metals were also in large volume. In the machinery, shipbuilding, and aircraft industries, where new
orders had been large during the first half of the year and a considerable backlog of unfilled orders
had accumulated, activity was maintained at high levels in July, although ordinarily there are
declines at this seaSOn. Lumber production declined sharply early in July but has subsequently
increased accompanying a considerable rise in new orders.
In the automobile industry output declined sharply in July and the first half of August as
plants were closed to prepare for the shift to new model production. The decline was greater than
at this season in other recent years, reflecting the fact that production had been at high levels during
the first half of 1940 and large stocks had accumulated. These stocks were reduced considerably in
July as production was curtailed and retail sales continued large.
Textile production increased considerably further in July, reflecting chiefly a marked rise in
activity at woolen mills where output is still below the levels of a year ago. Production of cotton nnd
rayon textiles was maintained in July and was in larger volume than last summer, while activity at
silk mills increased somewhat from the exceptionally low level reached in June. Shoe production increased seasonally, while output of manufactured foods, which in June had been unusually large
for that time of year, showed less than the customary increase in July.
Coal production has risen further and shipments of iron ore down the Lakes have continued at
near-capacity rates. Petroleum production has been curtailed sharply, however, reflecting partly a
continued high level of stocks of petroleum products.
Value of new construction work undertaken increased sharply in July, owing mainly to a further
rise in public construction, and was at the highest level in the past decade, according to reports of
the F. W. Dodge Corporation and the Federal Reserve Bank of San Francisco. Awards for both
residential and nonresidential private building increased somewhat, although some decline is usual at
this season.
Increases were most pronounced in the Atlantic, Gulf, and Pacific Coast States, reflecting awards
of additional contracts for naval air station and shipyard construction. In the central portions of the
country there were generally small increases, although in some areas awards were lower.
DISTRIBUTION
Distribution of commodities to consumers was sustained in July at about the levels prevailing
in the first half of the year. Sales at .department stores declined more than seasonally, while sales at
variety stores showed little change, although a decline is usual in July.
Total freight-car loadings increased seasonally in July. Shipments of grain showed a considerable
rise and loadings of coal and coke continued to advance, while shipments of miscellaneous freight,
which include most manufactured products, declined by somewhat more than the usual seasonal
amount.
COMMODITY PRICES
Prices of basic commodities declined somewhat further from the middle of July to the middle of
August, with decreases chiefly in prices of commodities influenced by foreign supplies, such as lead,
rubber, cocoa, and coffee. Prices of steel scrap and zinc, on the other hand, advanced somewhat in
this period.
AGRICULTURE
Prospects for most crops showed little change in July, according to the Department of Agriculture. Production this year is expected to approximate the 1929-38 average and, considering carryovers, supplies of most crops will be large. Conditions for wheat and oats improved during July, while
the corn crop showed some deterioration. A cotton crop of 11,429,000 bales was indicated for this
season as compared with 11,817,000 bales last season.
BANK CREDIT
Total loans and investments at reporting member banks in 101 leading cities increased substantially during the five weeks ending August 14, owing mainly to purchases of direct and guaranteed
securities newly issued by the United States Government. Sale of these securities caused a large increase in Treasury balances with the Federal Reserve banks. As a result of this temporary development, excess reserves declined by $450,000,000 in this period despite an increase of over $500,000,000
in monetary gold stock .
GOVERNMENT SECURITY MARKET
Prices of United States Government securities were relatively steady during July and the early
part of August but declined slightly around the middle of August accompanying news of intensification of European warfare. The yield on the 1960-65 bonds increased to 2.39 per cent on August 14
compared with 2.34 per cent on July 1 and 2.26 per cent on April 2 at the year's peak in prices.

UNITED STATES CONSUMPTION AND EXPORTS OF COTTON, 1939-1940 SEASON
The outbreak of war in Europe last September had a pronounced effect upon the world's cotton trade. Some foreign
nations found it expedient to replenish depleted stocks of
cotton, particularly American, and activity at cotton textile
mills in most countries showed a noticeable upturn. In belligerent countries, processing establishments accelerated operations in order to meet the enlarged Government requirements
of cotton goods for military purposes. In other countries,
heavier internal demand from the civilian population and
from governments for defense purposes, together with increased foreign buying of cotton goods, resulted in increased
mill activity. In the United States, the outbreak of the war
brought heavy buying of cotton goods with the result that
cotton mill operations were stepped up sharply, and continued at a high level during the remainder of the year. On a
seasonally adjusted basis, the amount processed rose to an alltime peak in December, 1939, and the actual volume of
cotton consumed during the first five months of the season
was at a record high for that period. Although the rate of
consumption declined considerably in the first quarter of
1940, it turned upward again following the intensification of
the European War. The expansion in activity in this country
last fall was accompanied by higher prices for cotton goods,
wider mill margins, and the accumulation of a heavy backlog
of orders for future delivery. Since the initial buying movement last September, the demand for cotton textiles has been
sporadic, increasing sharply at times and then declining to a
low level. Nevertheless, the heavy backlog of orders accumulated during the fall of 1939 and the intermittent buying in
subsequent months enabled mills to maintain operations for
the season as a whole at a high level. The volume of raw
cotton consumed in the United States during the twelve
months ended July 31 amounted to 7,746,000 bales. This
total exceeds the amount processed in the preceding season by
887,000 bales, and is only moderately smaller than the record
consumption of 7,950,000 bales during the 1936-1937 season.
Consumption of cotton in Texas during the past season
showed a percentage increase over that in the preceding season
commensurate with the gain for the United States as a whole.
Moreover, the volume consumed in this State exceeded the
total for the 1936-1937 season by 6 per cent.
The operating results of consuming establishments in the
United States during the past season appear to have been more
profitable than in either of the two preceding seasons. The
average margin between the price of a pound of raw cotton
and the price of its cloth equivalent increased sharply last
fall, and although a downward trend has been in evidence
since that time, the spread for the season averaged 21 per cent
higher than in the previous season and 4 per cent in excess of
the average for the 1937-1938 season.
Exports of American cotton amounted to 6,175,000 bales
during the twelve months ended July 31, which was nearly
double the small volume shipped in the preceding season and
the highest for any corresponding period in six years. Direct
shipments to Germany ceased shortly after the outbreak of
the war, but exports to all other major importers of American
cotton increased during the 1939-1940 season. From the
standpoint of volume, exports of cotton to the United KingCONSUMPTION. STOCKS AND EXPORTS OF COTTON-(Bales)
July
July
June
August 1 to July 31
1940
1939
1940
This season Last season
Consumption at:
12,497
9.182
10,759
139,315
122,460
Texas mills . .... .... . . .
597,860
521.353
556.529
7.745,574
0.858,428
United States mills .. .. .
U.S. stooks-end of month:
862,105
973,542
1,160,028
In consuming estab'mts .
9.572,142
Public stg. &I compresses . 9,122,178 11,620,408
EXjlorts from U. S. to :
42,125
7,815
26,055
1,889.141
401,370
United Kingdom .. ... . .
2,892
None
11,874
724,025
338,023
Franoe ... . ...... , .... .
14,913
6,540
None
542.400
275,943
Italy .... ......... .. .. .
18,992
Nono
14.699
None
321,335
Germany .. . . . .... . . . . .
24,174
4,264
1,052,705
721,320
8,947
Other Europe . .. ...... .
18,755
34,503
42,143
914,154
864,278
23,283
50,294
1,033,932
404,571
i'lr~~I;~r ~~;i~t~ie". '.:::: 27,173
Toto! exports . . ..

120,388

106,531

133,530

0,175,349

-3,326,840

dom showed the most pronounced gain, increasing to the
highest level in thirteen years and accounting for nearly onethird of total American exports. Movements to Continental
Europe have virtually ceased since the extension of the war
to the Mediterranean area and the surrender of France. Nevertheless, shipments to Continental European countries for the
entire season exceeded those in the preceeding season by a wide
margin. During the past season, Spain reentered the American
market as a substantial buyer of cotton. Movements to the Far
East showed a considerable increase over those a year earlier
due chiefly to a marked expansion in takings by China. The
heavy exports of cotton from the United States resulted principally from the depleted foreign stocks of American cotton
Qt the beginning of the war, and during subsequent months
from the rushing of shipments for current needs and for the
accumulation of large stocks as a precaution against further
shipping difficulties. The American export subsidy, which
improved the competitive position of American cotton in
world markets; easier access to our markets; and the sharp increases in cotton mill activity in Great Britain, France and
several other European countries were also important factors
contributing to the increase in exports. Although total shipments during the past season were much larger than in the
preceding season and the heaviest for any season in six years,
they were still about 2,000,000 bales smaller than the average during the ten years prior to the 1934-1935 season. The
contraction in exports during recent years reflects the decline
in foreign utilization of American cotton as a result of the
expansion of cotton production in several foreign countries.
Although exports of American cotton to countries on the
European Continent are negligible at the present time due to
restrictions caused by military operations, movements to Great
Britain, Japan and Canada are being fairly well sustained.
According to commercial reports, shipments to those countries between the middle of June and August 1 accounted for
about nine-tenths of total exports for that period. Cotton
mill activity in Great Britain and the Orient has declined
considerably in recent weeks.
The combined domestic consumption and exports of cotton
from the United States during the past season amounted to
13,921,000 bales, which was 37 per cent greater than in the
preceding season and 2,100,000 bales above the 1939 production of cotton in the United States. The excess of distribution
over production caused a substantial withdrawal of cott~n
from Government loan stocks, and, in addition, domestiC
stocks of "free" cotton in commercial trade channels have been
reduced to the lowest level since 1925. Data on the volume
of American cotton consumed in foreign countries during ~he
1939-1940 season are incomplete, but available information
indicates that consumption was somewhat smaller than exporti
from the United States. In consequence, foreign stocks 0
American cotton at the beginning of the 1940-1941 season
were probably considerably larger than a year earlier.
DOMESTIC CONSUMPTION AND EXPORTS OF
AMERICAN COTTON MLUONS OF A.JNNING e.<~
I

MILLIO>!5 OF RUNNING BALES
12

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DOMESTIC CONSUMPTK>N

EXPORTS

10

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